XYZ Limited Has the Following Ledger Account Balances: Income Tax

question 3

Multiple Choice

XYZ Limited has the following ledger account balances: Income tax payable opening balance $47,000; closing balance $29,000. The amount of tax expense accrued at the end of the year was $22,000. The amount that has been paid during the year to the taxation authorities for incomes taxes is:

• A) $54,000.
• B) $22,000.
• C) $40,000.
• D) $98,000.

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Definitions:

Working Backward

A problem-solving strategy where the solution is imagined first and then steps are deduced in reverse order to reach the starting point.

Well-Defined Endpoint

A clear and specific goal or outcome in a study or experiment that allows for the measure of success or failure.

Trial and Error

A problem-solving method involving repeated attempts to reach a solution, learning from failures until success is achieved.

Tool Kit

A set of tools or resources assembled for a specific purpose or task.